MUMBAI: Even as India is making quick progress as a global leader in software development and services, the hardware sector is making slow but steady and firm growth. Apart from posing as potentially one of the largest market in this part of the globe, manufacturing is also on the rise.

Distinctive Devices, Inc. (DDI), the parent of its wholly owned German subsidiary Galaxis Sales GmbH, has announced the signing of an agreement with Flextronics for the manufacturing of Galaxis' digital Set-Top Boxes (STBs), for cable, satellite and terrestrial platforms. The production will take place at Flextronic's facility in Bangalore for the Indian and European markets. The proposed production would provide over 700,000 STBs to fill current back orders.

According to sources, the product range to be manufactured by Flextronics is poised to generate significant additional sales revenue for Galaxis. Flextronics is expected to play an integral role in producing the next generation products, which will come with newly designed advanced features. These new models are targeted for release in the second quarter of 2005.

"Our partnership with Flextronics ensures that Galaxis' products will continue to be produced under the highest quality standards," said President and CEO of DDI, Sanjay Mody. "India is one of our key growth markets. Outsourcing our production to Flextronics will enable us to enhance our time-to-market and competitiveness," he added.

"We are thrilled by the opportunity to be Galaxis' partner of choice. I am confident that our full suite of supply chain services in India will facilitate DDI's Inc aggressive pursuit of a larger share in the Indian booming digital TV industry," said executive VP and MD for Flextronics Asia, Peter Tan.